Coal India to invest $4 billion in two Aussie assets
State-run company Coal India is reportedly negotiating the acquisition of two Australian miners in a transaction estimated in more than $4 billion.
According to Economic Times, the move would enable the Indian miner — the world's largest coal firm by output — to import 28 million tonnes high quality thermal coal a year.
Increasing demand from its domestic market, especially power producers, is pushing Coal of India to seek more overseas assets.
Its new Indian mining projects have been delayed in the permitting process by the government, particularly the environment ministry.
The company has signed an initial agreement with South Africa’s Limpopo provincial government to develop coal mines.
Otherwise, it is drilling in two coal blocks it owns in Mozambique to assess the size and quality of the coal deposits.